The UK will fail to meet its net zero targets, and transition
away from polluting fossil fuels, unless carbon capture is rolled
out at scale, the Scottish Affairs Committee warns today.
Scotland could hold the key to hydrogen and carbon capture being
rolled out at scale across the UK. It has extensive renewable
energy potential which could be the natural home for green
hydrogen, with skills from the oil and gas sector ready to be
transitioned to hydrogen and carbon capture as the UK looks
beyond fossil fuels. Existing infrastructure in Scotland allows
for opportunities to reform gas into hydrogen at St Fergus, and
the nation has access to secure geological storage of carbon due
to North Sea oil and gas fields. Further, the Committee was told
that there are 180GW of recoverable installed wind capacity in
Scottish waters, which vastly exceeds Scotland’s and much of the
UK’s needs, presenting a unique opportunity for the UK to take a
leading position in the global hydrogen export market.
Yet despite this, and ambitious targets being set by both the UK
and Scottish governments, policy progress appears lacking.
Witnesses told the inquiry that there does not appear to be a
sense of urgency in the numerous areas requiring attention before
hydrogen can be rolled out. This includes key decisions on
hydrogen production, planning decisions, storage and
transportation. Interim targets to assess progress and a timeline
of when key milestones will be met will be critical for industry
confidence.
The Committee is disappointed with the lack of priority the UK
Government has given to the Acorn Project in St Fergus,
Aberdeenshire, bumping it to the ‘reserve cluster’. The Committee
believes there is no justification for failing to approve the
project when it is shovel ready. As St Fergus is the first
landing point for 35% of all natural gas used in the UK, the
project can take the gas and reform it into clean burning
hydrogen with the CO2 emissions captured, removed and stored.
Next week’s Budget provides the ideal opportunity for the UK
Government to outline funding details for the Acorn Project to
finally allow it to get off the ground.
Scottish Affairs Committee Chair, MP, said:
“Net zero is little more than a pipe dream without carbon
capture. The hydrogen potential is clearly there, and our
Committee is impressed with projects where energy companies are
piloting green energy projects around Scotland making use of our
vast renewable energy potential.
“But the twin-track approach that the UK Government is committed
to introducing, leaves gaping policy holes: none more so than
around carbon capture. It is deeply disappointing that the Acorn
Project, that already has much of the necessary infrastructure in
place, has been put on the back-burner and the lack of any
certainty is majorly denting industry confidence. Clarity must be
given at next week’s Budget.
“If the policy gaps are addressed, and the UK Government jumps on
the opportunities in Scotland, we could be a major exporter of
clean energy with thriving clusters and local economies.”
The UK Government is due to make a decision on hydrogen in home
heating by 2026. In anticipation of this, the Committee
recommends that the UK Government mandates hydrogen-ready boilers
in all suitable properties as soon as practicable.
Notes to editors:
- The full list of conclusions and recommendations can be found
on page 45 of the report.
